Deal Details and Funding
Evernorth Holdings announced plans Monday to establish a large, publicly traded XRP treasury through a merger with blank-check firm Armada Acquisition Corp II (AACI). The Nevada-based company has signed a business combination agreement with AACI, with the expectation of listing on Nasdaq under the ticker symbol XRPN. The transaction is targeted for completion in the first quarter of 2026, pending shareholder approvals and listing requirements.
The proposed deal is anticipated to raise over $1 billion in gross proceeds. This includes a significant $200 million commitment from SBI. Among the notable backers are Ripple, Rippleworks, Pantera Capital, Kraken, GSR, and Ripple co-founder Chris Larsen, as detailed in the press release.
Evernorth's Strategy and Operations
Evernorth plans to allocate the majority of the net proceeds towards purchasing XRP on the open market to build its institutional treasury. The remaining funds will be utilized for working capital and to cover deal expenses. Class A shares of AACI that are not redeemed are expected to convert one-for-one into Evernorth Class A shares upon closing.
The company aims to operate as an active investment vehicle rather than a passive tracker. Its planned strategies include lending to institutions, providing liquidity, and engaging in decentralized finance (DeFi) strategies to generate yield. CEO Asheesh Birla, who previously held a senior executive role at Ripple, emphasized that the firm's objective is to offer investors more than just simple price exposure to XRP.
Evernorth intends to run validators on the XRP Ledger and plans to leverage Ripple's RLUSD stablecoin as an on-ramp into XRP-based DeFi protocols. Furthermore, the company has stated its intention to support projects focused on payments, capital markets, and tokenized assets. However, the execution of these initiatives is contingent upon the successful closing of the transaction and prevailing market conditions.
Leadership and Strategic Partnerships
Asheesh Birla will lead the Evernorth team, which also includes CFO Matthew Frymier, COO Meg Nakamura, Chief Legal Officer Jessica Jonas, and Chief Business Officer Sagar Shah. Ripple is positioned as a strategic investor in this venture. Executives from Ripple, including Brad Garlinghouse, Stuart Alderoty, and David Schwartz, are expected to serve as strategic advisers, while Evernorth will maintain its independent governance structure.
Path to Public Listing and Investor Benefits
The merger agreement has received approval from both companies' boards. The finalization of the deal now rests on shareholder votes, the extent of potential redemptions, regulatory review, and the successful execution of the outlined funding plan.
Upon successful completion, XRPN would provide public-market investors with exposure to XRP's price movements. Additionally, it would offer the potential for incremental returns derived from the company's lending, liquidity provision, and DeFi participation strategies.